No slowing down on H1 borrowing plan: Finance ministry official

The government said on Monday it would not cut its borrowing target scheduled for the first half of the current fiscal, scotching all speculations after a bond auction announcement was skipped last Friday.

The government is slated to borrow a total of Rs 2.99 lakh crore in the first half till September end.

The government's borrowing programme is frontloaded with 66 per cent of the borrowing for the fiscal 2009-10 in thefirst six months. The full-year borrowing target of the government stands at Rs 4.51 lakh crore.

The government, on Aug 7 had rejected all the bids for its papers that would have enabled it to raise Rs 12,000crore. However, the official said an equal amount would be raised within the first half itself.

"Bond option rejected earlier would be adjusted towards September end," the official said.

The announcement for the bond auction in the following week generally happens on the previous Friday.